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Auction purchases

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Auction purchases

Are you planning to buy at auction?

 

We can help you. Auctions are a place where buyers can get a good deal but they are also a place where money can be lost if buyers are not careful about their investment.

 

It is key when buying at auction to do your research and due diligence before committing to a property. Auctions are very different to buying from the open market. On the fall of the auctioneer’s hammer a buyer is contractually committed to buying and paying for a property. Before you bid for a property you should always have the auction pack reviewed by a solicitor. We can do that for you.

 

One important thing to remember is that there is no obligation on a Seller to include information about a property or disclose problems with it in the auction pack. A buyer needs to do their research and consider carefully what has been disclosed but also what is missing from the auction pack so they can take a reasoned approached.

 

With costs starting from £395.00 plus VAT we will review an auction pack and provide you with a report on the documents in the pack. We will also make you aware of what is missing from the pack which could lead to a potential problem on acquisition. Please call us on 01204 377600 or drop us an email on commercialpropertyenquiries@afglaw.co.uk and we will respond as soon as possible.

 

Before buying at auction consider the following:

 

Due Diligence: Carry out your research and due diligence. If you are the winning bidder at auction you will be contractually obliged to complete the transaction. You need to know what you are buying before you bid and what (if any) problems affect the property. .

Timing: A solicitor should review the auction pack before the auction and report to you on the contents. Auction packs are usually available for a very short period before the auction. Have you located a solicitor that has the time to review the pack before the auction takes place?

 

Funding: Always ensure you have the funding available within the required timescale. Most auction completions must take place within 20 working days from the auction. Are you certain that you will have enough cash available before you need to complete?

 

Buildings Insurance: It is likely the property will be at the buyer’s risk from the date of the auction. If you are the successful bidder at auction you should immediately arrange buildings insurance. Do you have all the information you need to arrange that insurance? Is there anything affecting the property that could increase the cost of that insurance or prevent you from putting it in place?

 

Be aware of the extras: There will be other costs to pay in addition to the purchase price. The Seller will most likely ask for a contribution to their legal costs and for a refund of the cost of the searches. The Seller may also ask you to pay for other costs such as their auctioneers fees and for any consents they may need. These extra costs are usually set out in the Special Conditions. Do you know what extra costs you will need to pay?

 

Our commercial property team can help you with a full range of legal services.

 

Contact commercialpropertyenquiries@afglaw.co.uk for further information or call us on 01204 377600

 

WHO IS GOING TO HELP YOU?

Commercial Property

Our commercial property team can help you with a full range of legal services.

 

Contact commercialpropertyenquiries@afglaw.co.uk for further information or call us on 01204 377600

 

Not sure what you need?

Picking up the phone to one of our team will not commit you to taking things forward. We are happy to have an initial, totally confidential conversation with you and go from there.

Give us a call

  • Bolton 01204 377600
  • Bury 0161 359 3880

Or send us an email

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We offer a full range of legal services for individuals and businesses alike.

Many of our services are provided UK-wide, with our physical offices located in Bolton and Bury.

“Just a quick note to say an absolute massive
thank you for my sale and purchase of my new home.
You have all been brilliant and made my move stress free. The fun starts today!”

Suzanne Edmonds

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